Government of India allows 100% foreign direct investment (FDI) in insurance companies via automatic route

Key facts

• The Government of India has allowed 100% foreign direct investment (FDI) in insurance companies through the automatic route.
• The Department for Promotion of Industry and Internal Trade (DPIIT), in Press Note 1 (2026 Series), clarified that foreign investment is permitted automatically subject to regulatory clearance by the Insurance Regulatory and Development Authority of India (IRDAI).
• Foreign investment in Life Insurance Corporation of India (LIC) remains capped at 20% under the automatic route, keeping it under a separate framework.
• Insurance companies with foreign investment must appoint at least one resident Indian citizen as chairperson, managing director, or chief executive officer to ensure domestic control.
• The 100% FDI limit also extends to insurance intermediaries such as brokers, reinsurance brokers, corporate agents, third-party administrators, surveyors, loss assessors, managing general agents, and insurance repositories, subject to IRDAI norms.